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The Perth Property Crash Thread; Let us enjoy the inevitable collapse as it unfolds in WA
Topic Started: 13 Aug 2014, 12:28 AM (89,607 Views)
KaiserSauzee
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Wages in Australia are not high if the exchange rate was more in line with historical trends

For example, you can live a VERY comfortable lifestyle in the UK on £40k per year

For the past few years the exchange rate of AUD to GBP has been 1.5 aud to 1 GBP

Equating £40k to $60k per year

$60k per year in Australia would not get you anywhere near the lifestyle £40k per year would in the UK/Europe

Another way of looking at it is that 40k per year in the UK is branching into senior management wages, 60k in Australia is sales assistant in a shop wages

What needs to happen is the Aud to make a massive correction, perhaps up to 2.5 aud to 1 gbp, which will effectively lower production costs in Australia and also promote investment and tourism opportunities from overseas

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newjez
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KaiserSauzee
22 Nov 2014, 01:52 PM
Wages in Australia are not high if the exchange rate was more in line with historical trends

For example, you can live a VERY comfortable lifestyle in the UK on £40k per year

For the past few years the exchange rate of AUD to GBP has been 1.5 aud to 1 GBP

Equating £40k to $60k per year

$60k per year in Australia would not get you anywhere near the lifestyle £40k per year would in the UK/Europe

Another way of looking at it is that 40k per year in the UK is branching into senior management wages, 60k in Australia is sales assistant in a shop wages

What needs to happen is the Aud to make a massive correction, perhaps up to 2.5 aud to 1 gbp, which will effectively lower production costs in Australia and also promote investment and tourism opportunities from overseas

I would question that. 60k is the new 40k. Inflation has been rife.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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skamy
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KaiserSauzee
22 Nov 2014, 01:52 PM
Wages in Australia are not high if the exchange rate was more in line with historical trends

For example, you can live a VERY comfortable lifestyle in the UK on £40k per year

For the past few years the exchange rate of AUD to GBP has been 1.5 aud to 1 GBP

Equating £40k to $60k per year

$60k per year in Australia would not get you anywhere near the lifestyle £40k per year would in the UK/Europe

Another way of looking at it is that 40k per year in the UK is branching into senior management wages, 60k in Australia is sales assistant in a shop wages

What needs to happen is the Aud to make a massive correction, perhaps up to 2.5 aud to 1 gbp, which will effectively lower production costs in Australia and also promote investment and tourism opportunities from overseas

Wow I agree with you.
Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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Jimbo
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KaiserSauzee
22 Nov 2014, 01:52 PM
Wages in Australia are not high if the exchange rate was more in line with historical trends

For example, you can live a VERY comfortable lifestyle in the UK on £40k per year

For the past few years the exchange rate of AUD to GBP has been 1.5 aud to 1 GBP

Equating £40k to $60k per year

$60k per year in Australia would not get you anywhere near the lifestyle £40k per year would in the UK/Europe

Another way of looking at it is that 40k per year in the UK is branching into senior management wages, 60k in Australia is sales assistant in a shop wages

What needs to happen is the Aud to make a massive correction, perhaps up to 2.5 aud to 1 gbp, which will effectively lower production costs in Australia and also promote investment and tourism opportunities from overseas

Australian wages are high compared to the rest of the world. Wages are a major overhead for most employers which makes Australian industry uncompetitive.

When the AUD/USD was near parity, my company actually started importing components from the USA because it was cheaper than making those same things in Perth. That includes all shipping costs and import duties. That has swung back now as the AUD has fallen lower.

Every job we bid for, we compete against Asian contractors and we tend to only win highly complex projects requiring heavy client quality control and inspection. We are more expensive but the client doesn't have to fly to KL or whatever for hold and witness inspections.

Skamy would love to believe that we are all underpaid in WA and we are all due a 10% wage rise. That would put at least another 100k per property into her Bali fund.

Fact is, after a record low unemployment rate, skills shortages and a build at any cost mining capex boom, wages are as high as they are going to go for a long time yet.





Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Drgonzo
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we are seeing a lot of interest from WA for employment on civil projects on the east coast.

salaries have been better on the right jobs on the east coast for a while now and it beats working FIFO swings in Port Headland.
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zaph
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KaiserSauzee
22 Nov 2014, 01:52 PM
60k in Australia is sales assistant in a shop wages
Let them eat cake!!

Shop assistants get nothing near 60k.
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zaph
23 Nov 2014, 08:08 AM
Let them eat cake!!

Shop assistants get nothing near 60k.
Many will be happy enough to even have a job before much longer .

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Perthite
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News reports should be out soon... Unemployment in regional WA is skyrocketing.

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skamy
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Jimbo
22 Nov 2014, 06:22 PM
Australian wages are high compared to the rest of the world. Wages are a major overhead for most employers which makes Australian industry uncompetitive.

When the AUD/USD was near parity, my company actually started importing components from the USA because it was cheaper than making those same things in Perth. That includes all shipping costs and import duties. That has swung back now as the AUD has fallen lower.

Every job we bid for, we compete against Asian contractors and we tend to only win highly complex projects requiring heavy client quality control and inspection. We are more expensive but the client doesn't have to fly to KL or whatever for hold and witness inspections.

Skamy would love to believe that we are all underpaid in WA and we are all due a 10% wage rise. That would put at least another 100k per property into her Bali fund.

Fact is, after a record low unemployment rate, skills shortages and a build at any cost mining capex boom, wages are as high as they are going to go for a long time yet.




Nice made up story you got there Jimbo.
Perthite
23 Nov 2014, 02:35 PM
News reports should be out soon... Unemployment in regional WA is skyrocketing.

Yes Perthite- there is a big movement of folk from the regions into Perth, I assume we have both just read the Sunday local news.

They reckon it is going to put further pressure on Perth which is already growing in population. It will be interesting to watch the Perth rental vacancy rates over the next few months. There is lots of work coming up in Perth lets hope it is enough to ensure people do not experience real hardship.
Edited by skamy, 23 Nov 2014, 02:45 PM.
Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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Foxy
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Zero is coming...

Maybe this is why more highrise is coming to Perth.

Can't pay the mortgage??
No problems step right this way sir.


http://www.zerohedge.com/news/2014-11-22/hard-landing-imminent-china-reminds-residents-it-illegal-jump-tops-buildings


Peter

http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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